I'm currently investing directly from my paycheck 1,100 a month. I heard last night in CNN that wall street will likely not recover for the next 18 months. I already have invested over 14k so far, losing a bit. However should I take my money and put it on a more secure account llike in INGdirect savings account where my money will not be risk?. Should I wait for at least the end of 2009 to re-invest? thanks.
Well, the "experts" are mixed on when the market will recover. 18 months is about the gloomiest prediction I've heard so far. Many say the market will turn bullish by early-spring 2009. So who knows really? Best thing to do now is play it conservatively since its a brutal and highly volatile market (meaning ETFs, mutual funds, and high-cap stocks with strong management and good yields). Remember the market always looks ahead so if this recession lasts for 2 full years, the market will probably begin recovering during the first half of 2009.
why not look at a preferred stock fund which has a steady dividend income. they are gaining about 7% this year some bonds have had some high yeilds also
btw--if your money is in a diversified mutual fund and not invidivual stocks, this downturn is likely where you'll make money. your fund manager is looking for bargains, of which there are many. your big earners for the next 10 years will likely be bought now.
How old are you? What is the money for? When do you anticipate needing the money? What is your risk tolerance? Without answers to those questions, there is no good answer for you. Everyone is different and there is no financial advice that fits any two people alike.
I took most my savings out of the stock market, and put it into hard medals and real estate 2-3 years ago. A few years ago I saw this slow drawn out recession coming, and got out. Gold is being suppressed, and its the best buy, and investment at this time.
My best investment in 2008 ended-up being a Chilean chemical & mining company (SQM). I invested in this company because they the biggest distributors of lithium, which I figured would be in high demand in the future since that chemical is needed in battery-powered vehicles. Better to be lucky than good, obviously, as my reason for buying the stock could not have been the reason why this stock performed so well in 2008 (with the whole vehicle-demand decrease). Anybody know why a fertilizer company in Chile would do so well when domestic fertilizer companies did poorly? Just stock-market maddness perhaps?